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As Per Latest Information Telia to Sell Its Operations and Network Assets in Denmark to Norlys

Telia selling Danish operations to Norlys for USD 920 million.

As part of its aim to concentrate on markets where it can establish a clear route to a leading market position, Swedish telecom operator Telia is selling its Danish business and assets to Danish telecom firm Norlys for USD 920 million. The transaction is pending the execution of final and binding agreements and is anticipated to close in Q1 2024.

HIGHLIGHTS

  • On a cash-and-debt-free basis, all of Telia’s activities and network assets in Denmark are anticipated to be worth DKK 6.25 billion.
  • The transaction is consistent with Telia’s strategy to concentrate on markets where there is an obvious route to obtaining and defending dominant market positions.
  • A legally binding term sheet outlining the high-level transactional terms has been signed by Telia and Norlys.

The Danish telecom company Norlys has purchased all of the activities and assets owned by the Swedish telecom company Telia in Denmark. The transaction, which is 6.25 billion Danish kroner (DKK), or 9.5 billion Swedish kronor (SEK), is anticipated to close at the latest in the first quarter of 2024. According to Telia, the sale is a component of its plan to concentrate on markets where it can easily ascend to a dominant market position.

Also Read: Telia launches 5G in three more cities, bringing Lithuania’s coverage to 95%

Create a Strong National Carrier

After weighing its various strategic options in Denmark over the years, Telia claims that by combining its strong mobile position with Norlys’ strong infrastructure position, a new national challenger with a dedicated long-term owner would be created, as well as value that would be realized right away for Telia.

The purchase of Telia’s mobile network, according to Norlys, which provides power and internet to over a million Danish households, would enable it to offer a full-service solution in Denmark and open up considerable development potential.

Also Read: Telia discontinues its 3G service in Denmark in favor of 4G and 5G.

Agreement

The deal, which is a legally binding term sheet, values Telia’s Danish businesses and assets at USD 920 million when measured in cash and free of debt. Telia has stated that it intends to utilize the sale profits to reduce its debt. The price is 8.9 times Telia Denmark’s EBITDA for 2022.

Both Telia and Norlys consider the transaction to be a significant milestone. Telia will be able to streamline operations and concentrate on industries in which it can be a market leader, and Norlys will acquire a powerful mobile network to support its current fiber business. With the deployment of the 5G digital infrastructure in the nation over the past 18 months, Telia Denmark has experienced a remarkable turnaround in the business.

Also Read: Telia to Be the First with a Nationwide 5G Network in Norway

Norlys Denmark

With more than 100 years of expertise, 3,500 employees, 1.7 million customer relationships, and almost 800,000 owner-members, Norlys is the biggest integrated energy and telecoms firm in Denmark. Final and legally binding agreements, Norly’s owners’ permission, and regulatory licenses are all pending while authorities assess the deal’s potential effects on the Danish telecom industry.

What do you think?

Written by Shallu Srivastav

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